U.S. homeowners hold record $11.5 trillion in tappable equity

U.S. homeowners hold a record $17.9 trillion in total equity, with $11.5 trillion classified as “tappable” equity that can be accessed while still meeting lender requirements. Despite these unprecedented levels of wealth, less than 0.1% of eligible homeowners have utilized these funds as of the second quarter of 2026.

The average homeowner with a mortgage holds approximately $310,000 in equity, an increase of $6,000 from the previous quarter. This growth is driven by multi-year home price appreciation, though a significant geographic divide exists. In states like Hawaii and California, average equity exceeds $600,000, whereas in Louisiana, Oklahoma, and Iowa, it sits just above $100,000.

Economists suggest homeowners are reluctant to tap into this wealth because many hold low mortgage rates from previous years. Accessing additional funds through second mortgages or home equity lines of credit (HELOCs) would require borrowing at significantly higher current interest rates. While HELOC and second mortgage originations rose by nearly 20% between the first and second quarters of 2026, the volume remains a tiny fraction of the total available capital.